ACCA Applied Skills · Performance Management · Performance analysis
A manufacturer's balanced scorecard includes the following measure: percentage of revenue generated from products launched in the last two years. Which perspective is this measure most appropriate for?
The measure fits the innovation and learning perspective, because the share of revenue from recently launched products shows how well the organisation innovates and develops new offerings. Although it uses revenue data, it is not a financial return measure, so the financial perspective is less appropriate.
- ACustomer perspective
- BInnovation and learning perspectiveCorrect
- CFinancial perspective
- DInternal business process perspective
Explanation
Revenue from new products shows the entity's ability to innovate and continue creating value, which is the focus of the innovation and learning perspective. It is expressed using revenue but is not a pure financial return measure, so the financial option is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Performance analysis shows your real accuracy, how long you take and where you lose marks.
More Performance analysis questions
- A company calls its helpline and measures the average time to answer calls. Management wants to use this single non-financial indicator to a…
- Which of the following is the most significant criticism of the balanced scorecard as a performance measurement tool?
- In Fitzgerald and Moon's Building Block model, which of the following is a 'dimension' rather than a 'standard' or 'reward' block?
- A hospital uses the Balanced Scorecard. Which of the following measures would normally be classified under the 'internal business process' p…
- Under Kaplan and Norton's balanced scorecard, which of the following is one of the four perspectives?
- A division has sales of $900,000, a net profit margin of 10% and capital employed of $600,000. What is the division's return on capital empl…